Louisiana Won’t Create State Health Insurance Exchanges

Gov. Bobby Jindal’s administration in Louisiana is opting out of creating the state insurance exchanges included in the new federal health overhaul, instead deciding the federal government should administer them.

State Department of Health and Hospitals Secretary Bruce Greenstein confirmed the decision, saying Louisiana is the second state to make such a decision.

The exchanges are insurance markets that will allow consumers to pick a subsidized private plan from a range of coverage levels and options. They are supposed to be up and running – either by the state or federal government – by 2014.

Greenstein says federal officials have provided too few details about how the exchanges should be run. He says he expects insurance premiums to increase under the exchange and doesn’t want state officials to be blamed.

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